Friday, 10 April 2015

Upcoming Port Development Debacle

On the left is the current state of the old Durban International Airport, and on the right side is Transnet's proposed port development plan.

Transnet
has bought the old Durban International Airport area with intention of
developing it into a completely new deep water harbour. The eThekwini
Municipality released draft proposals to develop the back of the port. The Back of Port Interface Local Area Plan is
part of a strategy to create support of international stature, and is linked
to Transnet’s plans to invest R100bn in the new Dug-out Port at the site of the old airport. At the same time, the
91-year-old Clairwood Racecourse has been sold by Gold Circle for R430m to
Capital Property Fund with the aim of developing a Warehouse & Logistics Park to service the port. There are also
plans to extend Berths 203-205 in the existing harbour which is currently under
review. The South Durban area will be greatly affected by these proposed
developments. While some maintain that they will help boost the economy, it is
debatable whether these claims are true.

Recently Transnet stated that there is a delay in
these developments and therefore the Durban Dig out Port will have a four year
delay due to planning and more research. Although these developments are
attracting foreign investors, it is of huge question whether or not South
Africa can afford to owe more money going forward in terms of finances. Will
it be another white elephant in which the tax payer’s purse dominates?

On the left is what the Clairwood Racecourse looked like before construction began, and on the right is the proposed finished transformation of the racecourse into a logistics and distribution hub.

However
other developments and accommodating ventures to the overall port expansion
project are still proceeding such as the Clairwood Racecourse. Extensive comments
have been submitted by SDCEA from late 2012 when we became aware of this
development. It was then positively authorized in 2014 and we have appealed
that decision on many social and environmental grounds which were not
considered in the initial decision. Therefore we are now in a process of
awaiting that final decision.

Construction activities that are taking place at the Clairwood Racecourse before official authorization.